Zacks Research Analysts Decrease Earnings Estimates for LUV

Southwest Airlines Co. (NYSE:LUV - Free Report) - Equities research analysts at Zacks Research decreased their Q1 2025 earnings per share estimates for Southwest Airlines in a note issued to investors on Tuesday, December 17th. Zacks Research analyst S. Goswami now expects that the airline will post earnings per share of $0.01 for the quarter, down from their previous estimate of $0.03. The consensus estimate for Southwest Airlines' current full-year earnings is $0.78 per share. Zacks Research also issued estimates for Southwest Airlines' Q2 2025 earnings at $0.81 EPS, FY2025 earnings at $1.40 EPS, Q2 2026 earnings at $0.84 EPS, Q3 2026 earnings at $0.30 EPS and FY2026 earnings at $2.22 EPS.

Southwest Airlines (NYSE:LUV - Get Free Report) last issued its quarterly earnings results on Thursday, October 24th. The airline reported $0.15 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.05 by $0.10. The firm had revenue of $6.87 billion during the quarter, compared to the consensus estimate of $6.77 billion. Southwest Airlines had a positive return on equity of 4.56% and a negative net margin of 0.06%. The company's revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter last year, the company posted $0.38 EPS.

Other equities research analysts also recently issued research reports about the company. JPMorgan Chase & Co. lifted their price target on Southwest Airlines from $20.00 to $26.00 and gave the stock a "neutral" rating in a research note on Friday, October 25th. StockNews.com raised Southwest Airlines from a "sell" rating to a "hold" rating in a report on Monday, October 28th. Susquehanna upped their target price on Southwest Airlines from $25.00 to $30.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 9th. BNP Paribas raised shares of Southwest Airlines to a "strong sell" rating in a research note on Thursday, September 19th. Finally, Barclays boosted their price objective on shares of Southwest Airlines from $32.00 to $35.00 and gave the stock an "equal weight" rating in a report on Friday, December 6th. Four equities research analysts have rated the stock with a sell rating, twelve have given a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, Southwest Airlines currently has an average rating of "Hold" and an average price target of $31.37.

Southwest Airlines Price Performance

Shares of NYSE LUV traded up $0.50 during mid-day trading on Friday, reaching $33.28. 14,985,434 shares of the company were exchanged, compared to its average volume of 9,057,610. Southwest Airlines has a 52 week low of $23.58 and a 52 week high of $36.12. The company's 50 day moving average price is $31.92 and its 200 day moving average price is $29.44. The stock has a market capitalization of $19.96 billion, a PE ratio of -475.43, a PEG ratio of 7.38 and a beta of 1.16. The company has a quick ratio of 0.83, a current ratio of 0.88 and a debt-to-equity ratio of 0.49.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Franklin Resources Inc. grew its stake in Southwest Airlines by 46.2% in the third quarter. Franklin Resources Inc. now owns 30,082,719 shares of the airline's stock worth $932,894,000 after purchasing an additional 9,504,201 shares during the period. Jacobs Levy Equity Management Inc. boosted its holdings in shares of Southwest Airlines by 608.5% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 3,623,333 shares of the airline's stock valued at $107,359,000 after buying an additional 3,111,946 shares in the last quarter. Mizuho Securities USA LLC grew its position in shares of Southwest Airlines by 6,414.5% in the 3rd quarter. Mizuho Securities USA LLC now owns 3,006,000 shares of the airline's stock worth $89,068,000 after buying an additional 2,959,857 shares during the period. Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of Southwest Airlines in the 2nd quarter worth about $48,551,000. Finally, Canada Pension Plan Investment Board increased its stake in shares of Southwest Airlines by 629.5% in the 2nd quarter. Canada Pension Plan Investment Board now owns 1,590,298 shares of the airline's stock worth $45,498,000 after acquiring an additional 1,372,305 shares in the last quarter. Institutional investors own 80.82% of the company's stock.

Insider Transactions at Southwest Airlines

In related news, major shareholder Elliott Investment Management sold 1,203,920 shares of the stock in a transaction dated Monday, October 28th. The shares were sold at an average price of $29.83, for a total value of $35,912,933.60. Following the completion of the transaction, the insider now directly owns 59,912,580 shares of the company's stock, valued at $1,787,192,261.40. This represents a 1.97 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Linda B. Rutherford sold 3,849 shares of the firm's stock in a transaction dated Friday, December 6th. The stock was sold at an average price of $34.40, for a total transaction of $132,405.60. Following the completion of the sale, the insider now owns 89,376 shares of the company's stock, valued at $3,074,534.40. This trade represents a 4.13 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.33% of the company's stock.

Southwest Airlines Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 16th. Shareholders of record on Thursday, December 26th will be issued a $0.18 dividend. This represents a $0.72 annualized dividend and a yield of 2.16%. The ex-dividend date of this dividend is Thursday, December 26th. Southwest Airlines's dividend payout ratio (DPR) is currently -1,028.57%.

Southwest Airlines Company Profile

Southwest Airlines Co operates as a passenger airline company that provides scheduled air transportation services in the United States and near-international markets. As of December 31, 2023, the company operated a total fleet of 817 Boeing 737 aircraft; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.